US EditionEuropean Central Bank trims interest rates after inflation dips below target
- The European Central Bank cut its main interest rate to 2% on Thursday, responding to inflation falling below target across the eurozone.
- The ECB acted due to easing inflation at 1.9%, the impact of US tariffs imposed by President Trump, and weakening economic growth in the euro area.
- This move marks the eighth rate cut by the ECB since last June and aims to support borrowing and economic activity amid elevated uncertainty.
- Eurozone inflation fell to 1.9%, dropping below the ECB’s target of 2% for the first time since last September, while the central bank indicated it remains open to adjusting future policies.
- The rate reduction suggests the ECB will maintain a cautious stance to counter trade-related headwinds and soft demand while awaiting clearer economic signals.
141 Articles
141 Articles
ECB Cuts Rates Again but Hints at Pause
FRANKFURT—The European Central Bank cut interest rates as expected on Thursday but hinted at a pause in its year-long easing cycle after inflation finally returned to its 2 percent target. The ECB has lowered borrowing costs eight times, or by 2 percentage points since last June, seeking to prop up a euro zone economy that was struggling even before erratic U.S. economic and trade policies dealt it further blows. With inflation now just below 2 …
European Central Bank cuts rates again but pause seen ahead
FRANKFURT, Germany – President Christine Lagarde said the European Central Bank was in a “good place” to deal with global uncertainty as it cut interest rates again Thursday, fueling expectations it might soon hit pause after a lengthy easing cycle. The ECB cut its key deposit rate a quarter point to 2 percent, as widely expected, its seventh consecutive reduction and eighth since June last year when it began lowering borrowing costs. READ: New …
The ECB Is Leaving No Space for More Tax Cuts. If You Go Back Down It Will only Be After the Summer.
Christine Lagarde has reduced the interest rate to 2% and has made it very clear that the ECB is staying out of space to make many more discounts. It is not certain that the jury will fall back this year.
Daily Journal
ECB cuts rates again but pause seen ahead
President Christine Lagarde said the European Central Bank was in a "good place" to deal with global uncertainty as it cut interest rates again Thursday, fuelling expectations it might soon
The European Central Bank has been lowering key interest rates in the euro area for the eighth time since June 2024.
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